topic Re: Next move? in Credit Cards

Next move?

RebuildingAgain14 — Mon, 29 Oct 2012 02:52:34 GMT

Wondering what my fellow forum participants may think... I am rebuilding slowly but surely. I have had a secured card from Capital One for about 6 months. Have not increased limit on that one yet but I intend to in the next few months. Otherwise, just leased a new vehicle and also financed a used vehicle through Chase. Wondering about timing for applying for a new card, and which card to go for at this point. Any advice would be greatly appreciated.

Thanks!

Re: Next move?

Anonymous — Mon, 29 Oct 2012 02:58:25 GMT

Leasing a car is the devil.

Check out www.bankrate.com for good cards. Consider a credit union.

Much success to you!

Re: Next move?

distantarray — Mon, 29 Oct 2012 03:17:17 GMT

@Anonymous wrote:
Leasing a car is the devil.

I've always been a cash buyer, purchased 11 cars in 13 years of driving history and I have to say leasing sounds nice right now =)

Just weigh the pros and cons but not really the devil.

Pros you turn the car in before it needs new tires these days it's about $1,000 for a full set of most tires for most cars

Brand new car every 2-3 years

New cars will practically have 0 maintance issues even if you buy a Ford (I have experience on this so =P )

Minimal maintance as washing and waxing a car religiously on a car for a couple years is often is not required

Always get a newer car which is usually always better on gas mileage

Cons of lease

over mileage fees

you never own the car

ANY damage has to be paid back in premium

Pros of buying

no over mileage fees

You will eventually own the car

Cons of buying

Erked whenever a new body style comes out (maybe just me lol)

You will have to pay for expensive tires, and expensive maintance

Have to wax and wash your car regularly to keep it nice after 5 years (difference is HUGE if you do not, when compared to one that's taken care of. My friend has a 98 Camry he PAMPERS still looks like it rolled out of the showroom floor)

General rule of thumb you lose $5,000 when you drive off the lot (around $5,000 is spent on leases in 2 years so basically feels like less than $100 a year if you get car around 20-25k

Example : 2013 Altima 2.5 S with Splash Guards and Mats lease, 24 Months for $209/month.
$2,399 initial payment. Total lease cost = $7,400)

of course the deals can only be obtained with great credit, but all depends what your looking at. My insurance is dirt cheap no matter what thanks to Military banking discounts and a 10 year clean driving record. So that's not an issue. In the end if you always like having a new car, and don't drive past 12,000 miles a year on average it's a great deal, also you can take over lease options of other people for killer savings and HUGE amount of unused miles if you search enough. So leasing > ownership for me now =)

Re: Next move?

Anonymous — Mon, 29 Oct 2012 03:19:36 GMT

I got offered one lease deal that seemed pretty good. Nissan Leaf for $138 per month.

I just don't want to be screwed when I turn it in for stuff like door dings and such. So, I would still rather own my car out right. But full EV sounds nice right now for city driving.

Re: Next move?

distantarray — Mon, 29 Oct 2012 03:33:20 GMT

@Anonymous wrote:
I got offered one lease deal that seemed pretty good. Nissan Leaf for $138 per month.

I just don't want to be screwed when I turn it in for stuff like door dings and such. So, I would still rather own my car out right. But full EV sounds nice right now for city driving.

you know if you really like the company incase you get door dings etc and stick with them for the next lease they'll usually work out REALLY nice deals with you =)

(pretty much removing the labor out of the work required) as an incentive to keep you aboard

But the way I see it leasing something like a Altima for 6 years straight will cost you around the total cost of the car, but you got a new car 3 times! and NO HUGE maintance and tires. That itself when you buy would probably cost you atleast $5,000 in maintance (tires+ timing belt + tune ups + alignments + more wash and waxing to keep it really nice) plus all the gas savings you'll probably have changing to the newer models lol, I know Altima 2013 gets almost twice the gas mileage as my Lexus right now, so that itself would save me $2,000 a year.

http://www.nissanusa.com/altima/

Oh yea and btw if you wanted to buy the car you leased, like the Altima in the lease deal MSRP is $23,555 , and at the end you can buy for $16,724 so your basically not really losing much. $6731 (total lease cost $7900, so only less than a $1,200) in difference only losing $1,200 potentiall going through the lease first, and who knows you might not like the car much after you got it.. Also remember if you get into an accident with the car and have Gap insurance (few hundred) this could save you thousands in resale of a car. Instead of YOU sucking up the resale value with having a car with a accident record, they eat the cost.

Re: Next move?

Anonymous — Mon, 29 Oct 2012 03:33:00 GMT

@distantarray wrote:
@Anonymous wrote:
I got offered one lease deal that seemed pretty good. Nissan Leaf for $138 per month.

I just don't want to be screwed when I turn it in for stuff like door dings and such. So, I would still rather own my car out right. But full EV sounds nice right now for city driving.
you know if you really like the company incase you get door dings etc and stick with them for the next lease they'll usually work out REALLY nice deals with you =)
(pretty much removing the labor out of the work required) as an incentive to keep you aboard

But the way I see it leasing something like a Altima for 6 years straight will cost you around the total cost of the car, but you got a new car 3 times! and NO HUGE maintance and tires. That itself when you buy would probably cost you atleast $5,000 in maintance (tires+ timing belt + tune ups + alignments + more wash and waxing to keep it really nice) plus all the gas savings you'll probably have changing to the newer models lol, I know Altima 2013 gets almost twice the gas mileage as my Lexus right now, so that itself would save me $2,000 a year.

http://www.nissanusa.com/altima/
Oh yea and btw if you wanted to buy the car you leased, like the Altima in the lease deal MSRP is $23,555 , and at the end you can buy for $17,724 so your basically not really losing much. $5731 in difference. Also remember if you get into an accident with the car and have Gap insurance (few hundred) this could save you thousands in resale of a car. Instead of YOU sucking up the resale value with having a car with a accident record, they eat the cost.

The leaf is $38k, but after 2 year lease purchase price is $21k. So, $3k down $138 per month is a pretty sweet deal.

Re: Next move?

distantarray — Mon, 29 Oct 2012 03:38:29 GMT

@Anonymous wrote:

The leaf is $38k, but after 2 year lease purchase price is $21k. So, $3k down $138 per month is a pretty sweet deal.

Considering you pay about 3 cent on electricity on average vs $4 a gallon of gas

@138 a month x 24 = 3312 + 3000 due at signing is $6,312 Considering average person uses over 550 gallons a year @ $4 a gallon = $2,200 a year. x 2 = $4,400

So basically your getting a car for $1988 + 3 cents of electrity x 1100 = $33 worth lol. So that's under $100 a month. DO IT lol

Re: Next move?

RebuildingAgain14 — Mon, 29 Oct 2012 03:41:00 GMT

My lease includes all scheduled maintanence for the first 36 months, plus the dealer offers free tires and car washes for life. Made sense for me at this point in time...

Now, not to be rude, but... anybody have any thoughts on my credit card question?! :-)

Re: Next move?

distantarray — Mon, 29 Oct 2012 03:46:43 GMT

@RebuildingAgain14 wrote:
Wondering what my fellow forum participants may think... I am rebuilding slowly but surely. I have had a secured card from Capital One for about 6 months. Have not increased limit on that one yet but I intend to in the next few months. Otherwise, just leased a new vehicle and also financed a used vehicle through Chase. Wondering about timing for applying for a new card, and which card to go for at this point. Any advice would be greatly appreciated.

Thanks!

lol sorry got off topic, but what's your scores looking like and your previous credit history?

Re: Next move?

distantarray — Mon, 29 Oct 2012 04:47:42 GMT

EQ 545 EX 513 TU 500

Those are your current scores? I really dont know what to say hmmm... which those scores it's going to be hard to get unsecured cards to be honest. I'm surprised you were able to get a car financed through Chase with those scores tbh. I think secured cards are still the way to go.

Re: Next move?

RebuildingAgain14 — Mon, 29 Oct 2012 05:28:08 GMT

No, my scores are a bit higher. Haven't updated them recently.

Re: Next move?

Anonymous — Mon, 29 Oct 2012 06:01:54 GMT

@RebuildingAgain14 wrote:
My lease includes all scheduled maintanence for the first 36 months, plus the dealer offers free tires and car washes for life. Made sense for me at this point in time...

Now, not to be rude, but... anybody have any thoughts on my credit card question?! :-)

Wait are you trying to tell me this is a credit card forum??? sorry about getting off topic

Who do you bank with? Sometimes they are the best place to get a card from when you have a short history

Re: Next move?

toppers555 — Mon, 29 Oct 2012 06:13:23 GMT

@distantarray wrote:
EQ 545 EX 513 TU 500

Those are your current scores? I really dont know what to say hmmm... which those scores it's going to be hard to get unsecured cards to be honest. I'm surprised you were able to get a car financed through Chase with those scores tbh. I think secured cards are still the way to go.

+1 I am surpised as well about Chase auto loan. As far as credit cards I agree you still need stick it out with secured cards. Also what is your current utilization? I know you said you have $300 limit so if your not pif every month and are reporting a balance ultilization may be hurting you. Also Bofa secured card is good choice to look into if you have the cash , and stick with it for a year.

edit: Also just notice you mention those are not your currnet scores. If you are in low-mid 600, you may want to start looking at GE cards.

Re: Next move?

CreditScholar — Mon, 29 Oct 2012 06:15:17 GMT

@toppers555 wrote:
@distantarray wrote:
EQ 545 EX 513 TU 500

Those are your current scores? I really dont know what to say hmmm... which those scores it's going to be hard to get unsecured cards to be honest. I'm surprised you were able to get a car financed through Chase with those scores tbh. I think secured cards are still the way to go.
+1 I am surpised as well about Chase auto loan. As far as credit cards I agree you still need stick it out with secured cards. Also what is your current utilization? I know you said you have $300 limit so if your not pif every month and are reporting a balance ultilization may be hurting you. Also Bofa secured card is good choice to look into if you have the cash , and stick with it for a year.

edit: Also just notice you mention those are not your currnet scores. If you are in low-mid 600, you may want to start looking at GE cards.

Those scores are downright horrible, even if that are a bit higher than what is currently listed. Secured cards will be your only likely option until you get ~620, and even then your options will be mediocre at best. You'll need to take this one step at a time.

Re: Next move?

Anonymous — Mon, 29 Oct 2012 21:45:13 GMT

Sounds like you know the car business well! Be happy, and much success to you. Sorry to get you off topic. I personally had not the most pleasant leasing experiences, and it made me never want to lease again.

Re: Next move?

Anonymous — Mon, 29 Oct 2012 22:17:14 GMT

You need to take into account all the tax returns incentive the government and estate give you for buying an electric car.

Depending where you live and after the deductions, the net price of the Leaf is around $30,000.

If you are bringing in around $7,000 for the lease, that would bring down buying cost to $23,000 after the leasing is done.

Considering the car demands from $30-40 a month to keep it going and that you will receive a free home charger kit from your estate, it would make a pretty good deal to go for the leasing first and buying right after option depending on how the car fits you.

This way you are not tied down to the car and have no maintenance costs as you mentioned.

---

Now going back to the CCs, with those scores it will be very difficult for someone to approve you.